Army MATOC - First awards under $7 billion renewable energy contract

HUNTSVILLE, Ala., May 3, 2013 /PRNewswire-USNewswire/ -- The U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, working with the Army Energy Initiatives Task Force (EITF), today awarded the first of its kind Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contracts (MATOC) for the first technology under this contract to support renewable energy on Defense Department installations.

Individual MATOC awards are being staggered by technology starting with today's announcement for geothermal.  Announcement of awards for the remaining technologies, solar, wind and biomass, are anticipated for staggered release through the end of calendar year 2013.

The total amount for all awards under the Renewable and Alternative Energy Power Production for DoD Installations MATOC will not exceed $7 billion.  The MATOC will be used to procure reliable, locally generated, renewable and alternative energy through power purchase agreements (PPA).  The $7 billion capacity would be expended for PPAs to procure energy over a period of 30 years or less from renewable energy plants that are designed, financed, constructed, operated and maintained by contractors using private sector financing. 

The five companies awarded contracts for use in competing and awarding PPA task orders using geothermal technology are Constellation NewEnergy, Inc., Baltimore, Md.; ECC Renewables, LLC, – Burlingame, Calif.; Enel Green Power North America, Inc. – Andover, Mass.; LTC Federal, LLC, Detroit, Mich.; and Siemens Government Technologies, Inc., Arlington, Va.

The contracts provide a three-year base with seven one-year options, for a total ordering period of 10 years.  Having these contracts in place will expedite the acquisition process for future projects. 

Huntsville Center, working on behalf of USACE with the Army's EITF, issued the Request for Proposal for the $7 billion Renewable and Alternative Energy Power Production for DoD Installations MATOC on Aug. 7, 2012. 

These contracts will place the Army one step closer to meeting the Congressionally mandated energy goal of 25 percent production and consumption of energy from renewable sources by 2025 and improving installation energy security and sustainability while remaining cost conscious.

"In our current fiscal environment, attracting third-party money to build renewable energy production facilities that will allow military installations to purchase energy at a pre-determined rate without building, owning and maintaining the facility is the right thing to do," said Col. Robert Ruch, Huntsville Center commander.  "Increasing energy security is a top priority for DoD and Army leadership, and this effort will lead to enhanced energy security and sustainability for our installations."

In April 2012, the White House announced the Defense Department was making one of the largest commitments to clean energy in history, by setting a goal to deploy 3 gigawatts of renewable energy – including solar, wind, biomass or geothermal – on Army, Navy and Air Force installations by 2025.  That is enough energy to power 750,000 homes.  The Army's goal is 1 gigawatt of that total.  These goals support the broader DoD goal to enhance installation energy security and reduce installation energy costs.

By awarding these contracts, the Army will increase its agility by streamlining acquisition processes to develop large-scale renewable energy projects that use private sector financing.  This approach will help speed overall project development timelines to ensure the best value to the Army and private sector.

Mr. John Lushetsky, the EITF's executive director, spoke about the role of the EITF in helping the Army meet its renewable energy goals.

"To reach the Army's goal of deploying 1 gigawatt of renewable energy by 2025 will require a different way of doing business with the private sector.  The issuance of the MATOC is a clear milestone for us, and the significant interest we've seen from industry indicates that we are on the right path.  The EITF has worked closely with the Huntsville Center to make the MATOC a streamlined and agile tool for the government to procure power from large scale renewable energy projects." 

SOURCE U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville